As with other industrial metals, the spot price of tin is correlated with inventory levels on the supply side and the global economic recovery on the demand side. Over the last year the spot price of tin on the LME has moved from an average price last April of US $12165.8 per tonne to a current valuation of US $18695 per tonne, a gain of almost 54 percent.
Lots of positive sentiment in the air. Rio Tinto, the world's second-largest miner, said it saw signs of recovery in China and it expected aluminum AL-FT prices to rise in the second half of 2009. Indonesia's tin consortium, Bangka Belitung Timah Sejahtera too expects a 20-30 per cent increase in its monthly production of 2,000 tonnes during the Muslim fasting season which starts on Saturday.
For decades the tin market has moved from one crisis to another, and the current world recession is now raising new challenges for all stakeholders in the industry. In the short-term the market is again oversupplied, but in a few years the situation could change dramatically. Though global demand for tin has fallen rapidly to an estimated 350,000 tonnes in 2008, the 15 tin companies listed on the ASX are doing extremely well. Check out an overview.
China has been bailing out its struggling domestic smelters by stockpiling metals since December. Heralding the Chinese New Year, wherein most companies and projects run overtime during the Spring Festival in order to ensure annual production plan, several firms have decided to take the long road.
Tuesday, April 13, 2010